Financial Results 1H 2018 - Banca IFIS

1. 1
Cambiare
immagine

2. 2
HIGHLIGHTS
POSITIVE
FINANCIAL
PERFORMANCE
SOLID BALANCE
SHEET
STRONG
LIQUIDITY
POSITION
• Net banking income at 278,1 mio due mainly to strong
contribution of the NPL Area
• Non recurrent items in 1H2017 and 1H2018 make
comparison difficult between the semesters
• EBT adjusted at 50,5 mio in 1H18 vs 43,6 mio in 1H17
• Shareholder’s equity at 1.373 with CET1 15,13%*
• Continued effort on diversification as well as lengthening
maturity profile of funding position
• Funding position at 7.819,0 well balanced between
deposits, debt securities and due to banks
*Banca IFIS only

3. 3
INSIGHTS FOR THE UNDERSTANDING OF THE 2Q 1H RESULTS
• Segment reporting consistent with 1Q2018, but different
versus 2017
• Valuation risk model metrics extended to a part of NPL as
in 1Q2018 NPL data (WIP process of the legal factory)
• Reversal PPA lower in 2Q2018 vs 2Q2017 (22 mio vs 38
mio)
• Highly Provisions in 2Q2018 due to one significant position
• IFRS9 first time adoption
• New funding structure
• Acquisition of Capitalfin
MAIN
DISCONTINUTY
IN NUMBERS
REPORTED
2018-2017
BUT
CONSISTENT
WITH 1Q2018

4. 4
Data
1H
Enterprises Area NPL G&S Total
NBI 2018 165,1 119,3 -6,2 278,1
NBI 2017 171,7 79,0 2,5 253,2
% Change -3,9% +51,1% n.s. 9,8%
NPFA 2018 126,1 119,3 -7,3 238,1
NPFA 2017 183,2 79,0 3,1 265,3
% Change -31,2% 51,1% n.s. -10,3%
MARGINS (NBI and NPFA*)
(Million Euro)
NBI: 278,1
( 253,2 1H 2017) +9,8%
59,4%
42,9%
-2,3%
-20,0%
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
Enterprises NPL Area G&S
NBI 1H 2018 by segment
NPFA: 238,1
(265,3 1H 2017) -10,3%
*NPFA= Net Profit from Financial Activities
Enterprises segment includes:
• Trade receivables & M/L term lending
• Corporate banking
• Leasing
• Tax receivables
*

5. 5
58,5
51,7
TRADE RECEIVABLES* (Factoring + m/l term lending)
TURNOVER € Bn
*1H 2018 includes M/L term Lending; ** data proforma
5,6
6,1
70,1
80,3
NET BANKING INCOME €m
NET PROFIT from FINANCIAL ACTIVITY €m
65,8 51,7
1H 2017 1H 2018
1H 2017 1H 2018
1H 2017 1H 2018
• Turnover 6,1 €bn (+8,8% vs 1H 2017) due to the increase in
nr. of factoring clients (+6,3%)
• Outstanding 3,8 €bn (+1,2% vs 2H 2017)
• Loans 3,4 €bn (+11,3% vs 2H 2017)
• 14,5% at NBI level in 1H 2018 vs 1H 2017 driven by
turnover, clients and loans growth
• -11,6% decrease reported in NPFA vs 1H 2017 due to
• 28,6 mln euro provisions vs 11,7 mln in 1H 2017. Provisions
growth is related to a single relevant position.
• LFL growth up 1,9%,
including M/L term
lending
• LFL -21,4%, including
M/L term lending vs
1H 2017
78,8
80,3
1H 2017 1H 2018
1H 2017 1H 2018

6. 6
CORPORATE BANKING*
CUSTOMERS LOANS & NEW VOLUMES € m
*1H 2018 does not include M/L Term Lending
972
752
65,2
52,5
NET BANKING INCOME €m
NET PROFIT from FINANCIAL ACTIVITY €m
97,0
47,2
1H 2017 1H 2018
• New Loans at 143,8 in 1H18: loans up by 4% at LFL
perimeter (M/L term lending not anymore
included in this area)
• Outstanding loans at 752 m € up by 11% vs 4Q17
• M/L term lending not anymore included in this
area
• Reversal PPA included in NBI at 36 in 1H18 vs 48mn
in 1H17
• LFL comparison -12%
• 1H18 provisions 5,3 mln euro
• In 1H17 it included a release of provision of 21 mln
212,4 143,8
59,7
52,5
1H 2017 1H 2018
1H 2017 1H 2018
1H 2017 1H 2018

7. 7
LEASING
LOANS €m
1.303
1.328
29,0
26,2
NET BANKING INCOME €m
NET PROFIT from FINANCIAL ACTIVITY €m
27,9
21,2
1H 2017 1H 2018
1H 2017 1H 2018
1H 2017 1H 2018
• LFL leasing loans
increased by 4,6% (vs
2H 2017), excluding a
real estate mortgage
portfolio, riclassified
in G&S.
• NBI affected by the reclassification of a real estate
mortgage portfolio, reclassified in G&S, together with
the reversal of PPA
• No reversal of PPA
• Provisions 5,0 mln
*1H 2018 does not include real estate mortgage; ** data proforma
1.176
1.328
• New loans at 333 mln € (+5,2% vs 1H 2017)
24,5
26,2• LFL comparison NBI
grew by 7,0% driven
by volumes increase
22,4
21,2
• LFL comparison NPFA
-5,1% 1H 2017 1H 2018
1H 2017 1H 2018
1H 2017 1H 2018

8. 8
133,8
137,7
8,8
6,1
1 H 2017
1 H 2017
40,9
36,7
1 H 2017 1 H 2018
TAX RECEIVABLES
LOANS € m
NET BANKING INCOME €m
1 H 2018
1 H 2018
• Loans increased by 2,9%%
• NBI decreased by 30% due to a
reduction in cash collection and lower
purchase
PURCHASE €m
• GBV €m 179,1 m€

9. 9
NPL AREA
3,5 3,9
5,6
8,2
9,7
13,1 12,9
0
2
4
6
8
10
12
14
2012 2013 2014 2015 2016 2017 1H2018
GROSS BOOK VALUE Bn €)
NET BOOK VALUE Bn €)
ERC 15 yrs over 1,8 bn
104,0 128,0 135,0
354,0
562,0
799,0
851,4
-148
52
252
452
652
852
2012 2013 2014 2015 2016 2017 1H2018
• #Total Positions: 1,5 mln
• Average Ticket: 8k€
• #Total Debtors: 1,1 mln

10. 10
NPL AREA
1,2
0,5
2,0
4,1
3,1
4,8
2,3
0,1
0,0
1,0
2,0
3,0
4,0
5,0
2012 2013 2014 2015 2016 2017 1 H
2017
1 H
2018
PURCHASES IN GBV €Bn
22,5
28,8 32,6
40,0
78,2
128,3
54,0
80,7
0
20
40
60
80
100
120
140
2012 2013 2014 2015 2016 2017 1H2017 1H2018
YEAR/QUARTER CASH COLLECTED €m
3,0% 3,3%
2,4%
4,3%
5,8% 6,1% 6,6%
2012 2013 2014 2015 2016 2017 1H2018
NBV/GBV
2016 2017 2018
1Q 17 25 40
2Q 18 29 41
1H 35 54 81
7/2018
0,6
1,2
FBS
7,0 AUM

11. 11
NPL AREA
)
16,6
27,8 31,5
52,7
148,3
164,5
79,0
119,3
0
50
100
150
200
2012 2013 2014 2015 2016 2017 1H2017 1H2018
NET BANKING INCOME/ NET PROFIT from FINANCIAL ACTIVITY €m
+51% vs 1H2017

12. 12
NPL AREA
NPL Gross
Portfolio
646 mln
484 mln
340 mln
7.322 mln
Book Value/NPL
Portfolio
Collection
Non Judicial
Payment Plans
Order of
Assignment Wage
Judicial ongoing
workout
Processed at
least one time
22%
Value
143 mln
174 mln
80 mln
2%
24%
146 mln
12,9 bln 851 mln
36%
Internal and
External
Recovery
Department
Legal Recovery
Department
1.927 mlnStaging 3%49 mln
1 H 2018 data
Waiting for the
judicial workout 2.179 mln 259 mln 12%
38 mln
50 mln
35 mln
5 mln
-5 mln
0 mln
Contribution on
P&L
33 mln
Cash
10 mln
0 mln
32 mln
6 mln
0 mln
7% 123 mln 81 mln

13. 13
1H 2018; Million Euro
66,2 Mln 1H2018
NET PROFIT
-36,1%
103,7 Mln 1H2017
One off impacts (gross amounts) 1H 2018 1H 2017
Capital gain sale of NPL portfolio 2 17,6
One off provisions -14 0
Release of provisions 11,3 21
Reversal of PPA 44,1 63,7

14. 14
BALANCE SHEET – ASSET STRUCTURE
(Million Euro) % change 1H2018 vs 01.01.2018
Due from banks
1.568,0 -10,9%
Financial Asset =595,0
According to ifrs9
through P&L 30,6 (HFT)
through P&L at fair value 130,5 (FV TPL)
through OCI 433,8 (FV OCI)
Loans to customers
6.710,5 +4,8%
5.599,7 Enterprises
851,4 Area NPL
259,3 G&S
Other Assets
859,3 -0,6%
Fiscal Assets 400,8 of which:
Current tax assets 46,4
DTA 354,3
Adoption of IFRS9
Excess of liquidity as
a buffer for ongoing
activities of the bank
Expected impact
mainly on future cash
flows

15. 15
ASSET QUALITY & NPE TREND in ENTERPRISES segment
5.232 5.124
368 338
0
1.000
2.000
3.000
4.000
5.000
6.000
30/6/18 01/01/2018
Net Customer Loans
Performing Impaired
1H 2018 mln €
30/06/2018 01/01/2018 31/12/2017
Gross NPE 615,7 564,3 1.323,1
Gross NPE/Loans 10,5% 9,9% 20,1%
Net NPE 368,1 338,0 403,9
% Net NPE/ Loans 6,6% 6,2% 7,2%
Cost of credit 138 bp nd 31bp
According to the IFRS9 with new POCI
category, and new write off policy the
amounts of gross NPE is significantly
changed.

16. 16
FUNDING STRUCTURE
1H 2018 mln €
Flexible and diversified funding structure
The diversification has been achieved by:
• Reducing share of Repos with
customers to zero
• Renewing focus and attractiveness of
retail funding through the introduction
of 3y, 4y, 5y maturities for Rendimax
• EUR 700m TLTRO
• Tapping wholesale markets twice in
2017, with the inaugural issuance of a
EUR 300m senior unsecured bond and
a EUR 400m Tier 2 bond
• April 2018: 300 mln euro bond senior
unsecured preferred issued
7.8197.725
65,4%
59,4%
10,2%
14,0%
11,0% 12,8%
9,1% 8,9%
4,3% 4,9%
2017 1H2018
Retail Debt Securities ABS TLTRO Other

17. 17
BANCA IFIS GROUP: EQUITY KPIs
1H 2018 mln €
Banca IFIS Group only KPIs 2018 2017
30/06 31/12
Common Equity Tier 1 Ratio (CET1) 15,13% 15,64%
Tier 1 Capital Ratio (T1) 15,13% 15,64%
Total Own Fund Capital Ratio 20,28% 21,07%
Book value per share 25,69 25,62

18. This Presentation may contain written and oral “forward-looking statements”, which includes all statements that do not
relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely
on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a
number of uncertainties and other factors, many of which are outside the control of Banca IFIS. (the “Company”). There
are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit
contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of
future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as may be required by applicable law. The
information and opinions contained in this Presentation are provided as at the date hereof and are subject to change
without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied
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constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or
subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other
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Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia,
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Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Mariacristina
Taormina, in her capacity as manager responsible for the preparation of the Company’s financial reports, declares that
the accounting information contained in this Presentation reflects the Banca IFIS’s documented results, financial accounts
and accounting records.
Neither the Company nor any member of Banca IFIS nor any of its or their respective representatives, directors or
employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any
loss arising from its use or from any reliance placed upon it.